In a major shift, China has dethroned Japan to become the world's largest exporter of cars.
What Happened: The first quarter saw an impressive 58% surge in China's car exports, reaching a staggering 1.07 million vehicles. China now holds the top spot, followed by Japan and Germany, a BBC report noted, citing official government statistics.
Japan's vehicle exports reached 954,185 in the first quarter, showing a 6% increase from a year earlier.
This surge in Chinese car exports can largely be attributed to the growing popularity of electric vehicles. China dominates the global production of lithium-ion batteries, which power 75% of EVs worldwide. Leading the charge are Tesla Inc's
Another contributing factor to China's rise as an exporter is the void left by automakers retreating from the Russian market after the Ukraine invasion. Renowned companies like Toyota Motor Corp
Why It Matters: The significance of this shift extends beyond exports, as China's domestic EV market is also experiencing remarkable growth. Despite a 13% decline in overall passenger car sales in the first quarter, EVs and plug-in hybrids saw a 22% increase in sales.
In a bid to bolster the EV industry, China has recently proposed expediting the construction of charging facilities for electric vehicles and enhancing policies to promote their purchase and usage.
